SIGMA Lithium Resources Corporation, Vancouver, Canada, (TSXV: SGMA) (OTC-QB: SGMLF) has announced that, owing to strong global institutional investor interest, it has increased the size of its previously announced nonbrokered private placement of common shares (the “Offering”) by 40%. The Company now intends to issue up to 9,545,455 common shares (compared with 7,500,000 common shares previously announced) at a 10% higher offering price of C$4.40 per share (compared with C$4.00 per share previously announced) for gross proceeds of up to C$42.0 million.
The Offering book comprises primarily of institutional investors, including leading global asset managers focused on ESG & sustainability, therefore closely aligned in purpose with Sigma’s commitment to an ESG-centric strategy for the development of its Grota do Cirilo lithium project in Brazil (the “Project”). The planned use of proceeds of the Offering is as set forth in the Company’s news release dated February 2, 2021 titled “Sigma Lithium Announces a C$30 Million Private Placement of Common Shares at C$4.00”, with the additional proceeds from the increased Offering size to further enhance Sigma’s financial flexibility ahead of the start of construction of Phase 1 of the Project.
XP Investments US LLC, Cormark Securities Inc. and National Bank Financial Inc. acted as financial advisors to the Company and may receive finder’s compensation in respect of certain orders. This compensation will be comprised of (i) cash fees of up to 6% of the proceeds from subscribers introduced by finders and (ii) such number of warrants as is equal to up to 6% of the Common Shares purchased by such introduced subscribers (each such warrant entitling the finder to acquire one Common Share at an exercise price of C$4.40 per share and exercisable for one year after closing of the Offering). Other parties will also receive finder’s compensation in connection with the Offering.
In connection with the Offering, the Company has entered into an agreement with the A10 Group to provide services in respect of the Offering, and A10 Group will be entitled to finder’s compensation for purchases by subscribers it introduces as described above. The arrangements with the A10 Group were considered and unanimously approved by each of the directors of the Company unrelated to the A10 Group, and the agreement with the A10 Group it is subject to customary approval of the TSX Venture Exchange (“TSXV”).
About SIGMA Lithium
Sigma is a Canadian company that has been producing environmentally sustainable battery-grade lithium concentrate on a pilot scale since 2018 and shipping high-purity “green & sustainable” 6% Li2O batterygrade lithium concentrate samples to some of the leading global cathode and battery producers of electric vehicles. The Company is in pre-construction (including the EPC and “contract-readiness” of core construction suppliers) of a larger-scale lithium concentration commercial production plant in Phase 1 of the development of its Grota do Cirilo property. Based on the technical report titled “Grota do Cirilo Lithium Project, Araçuaí and Itinga Regions, Minas Gerais, Brazil, National Instrument 43-101 Technical Report on Feasibility Study Final Report” with an effective date of September 16, 2019 (the “Feasibility Study Report”), it will contemplate a capacity to produce at the rate of 220,000 tonnes annually of batterygrade “green” lithium concentrate and Sigma will be amongst the lowest-cost producers of lithium concentrate globally. The Feasibility Study Report is being updated to include the development of the Project’s second deposit, contemplating production at the rate of 440,000 tonnes per annum (Phase 2 of the Project).
Source:batteryindustry
